In 2023, the company achieved revenue of 11.45 billion yuan, an increase of 4.3%, net profit of 340 million yuan, an increase of 278.5% after deducting non-net profit of 230 million yuan, an increase of 1170.6%, a comprehensive gross profit margin of 25.2%, an increase of 8.3 pct, a net profit margin of 1.7%, a net increase of 1.2 pct, and a net cash flow from operating activities of 2.60 billion yuan, an increase of 38.4%.
2023Q4 achieved revenue of 2.91 billion yuan, an increase of 10.2%, a decrease of 5.3%, a net profit of 0.55 million yuan, a year-on-year increase of 794.1%, a decrease of 63.4% after deducting non-net profit of 0.12 million yuan, a year-on-year increase of 133.3%, a decrease of 90.0%, a comprehensive gross profit margin of 26.4%, a net profit margin of 0.12%, an increase of 1.1 pct, and a net decrease of 3.1 pct. Net cash flow from operating activities was 1.05 billion yuan, up 394.0% from the same period, and 55.0%.
The specific business segments are as follows: 1) Consumer: Achieved revenue of 10.48 billion yuan, an increase of 4.1%, gross profit margin of 27.6%, and an increase of 8.98 pcts. Among them, notebook computers achieved revenue of 6.61 billion yuan, an increase of 1.0%, and a market share of 31.1%, which is basically the same as in '22, ranking second in the world; mobile phones achieved revenue of 3.428 billion yuan, an increase of 12.44%, a market share of 8.2%, and 0.75 pct, ranking fifth in the world. The company's self-supplied consumer PACK ratio was 35.44%, an increase of 7 pcts over the same period. 2) Power & energy storage: Achieved revenue of 550 million yuan, an increase of 37.9%, gross profit margin -15.1%, and an increase of 15.8 pcts. The company continues to develop in-depth cooperation with existing customers such as HP, Lenovo, and Huawei to maintain revenue growth in line with declining global laptop and smartphone shipments. According to the subsidiary Zhejiang Guanyu's individual report, it achieved revenue of 660 million yuan, an increase of 43.3% over the same period.
2024Q1 achieved revenue of 2.55 billion yuan, an increase of 7.2%, a decrease of 12.3%, a net profit of 0.1 billion yuan, an increase of 107.2%, a decrease of 81.7% after deducting non-net profit of -0.16 million yuan, a year-on-year increase of 90.2%, a decrease of 231.7%, a consolidated gross profit margin of 24.7%, a net profit margin of -1.4%, an increase of 5.4 pcts, a net decrease of 1.5 pcts, a net cash flow of 620 million yuan, a year-on-year increase of 91.9% and a decrease of 41.2%.
Considering that the company has been affected by power & energy storage battery losses in the past two years, we lowered the company's net profit to 540 million yuan (the previous one was 1.5 billion yuan and 2.1 billion yuan), and is expected to achieve net profit of 1 billion yuan in 26. Considering that the company's power & energy storage batteries have a high impact on profit from loss to break-even to profit, we maintain a “buy” rating based on the current valuation level.
Risk warning: The power & energy storage battery business continues to lose money, the rise in raw materials exceeds expectations, the growth rate of the downstream consumer market falls short of expectations, the gross margin of the consumer business falls short of expectations, and the volume of starting and stopping batteries falls short of expectations.